Investors' Soapbox AM

Master Limited Partnerships Are Undervalued

Credit Suisse likes stocks exposed to natural-gas liquids.

October 25, 2012

Credit Suisse

In the wake of the Internal Revenue Service ruling approving ethylene steam crackers as qualified for master-limited-partnership treatment, we thought it would be useful to review how the MLP structure has the potential to unlock value.

Last week, the Alerian MLP (AMZX) and Cushing 30 MLP indexes lost 0.1% and 0.2%, respectively, while the Standard & Poor's 500 gained 0.3%. Nine MLPs are scheduled to release...